AUD/USD Breaks Above 0.70 Level as the RBA Hints at Pausing Rate Cuts for Now - Forex News by FX Leaders
The Aussie continues the bullish run

AUD/USD Breaks Above 0.70 Level as the RBA Hints at Pausing Rate Cuts for Now

Posted Wednesday, July 3, 2019 by
Skerdian Meta • 1 min read

The Aussie has been bearish for a long time as the trade tensions between the US and China have hurt Australian exports to China and, as a result, the economy. Although, we saw a bullish reversal in the second half of last month, which came from the USD side. The weak economic data from the US has piled on during the last few months, which increased fears that the US economy is joining the rest of the globe in this economic slowdown. Hence the decline in the USD index and the uptrend in AUD/USD during the last two weeks of June.

The Reserve Bank of Australia (RBA) has turned pretty bearish in recent months, I would say it is the most bearish among the major central banks right now. They cut interest rates for the second time yesterday after cutting them last month, taking them to 1.00% from 1.50% previously.

The Aussie should have declined, but traders were expecting that rate cut. Instead, they concentrated on the statement which said that they will hold on with rate cuts for the moment. That was enough to give the AUD a boost and it is now heading for the highs after breaking above 0.70 level.

The retrace down which took place at the end of last week ended at the 50 SMA (yellow) on the H4 chart, so now the picture looks quite bullish for this pair. Although, I think that this bullish move won’t last long because the Australian economy is still weakening, but I suppose the bearish reversal will come after the FED cuts interest rates this month.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments